OVERVIEW: Today Stock Market News
Hello and welcome to Yana Investment Academy, my name is Shanik Bhandari, and you all are very welcome in this new episode of today’s latest news, so as always, we will start with the world economy.
US retail sales up
US retail sales data which has come that It is more than expected, so the retail sales of US in March are 0.
7% bigger than 279.6 billion dollars, so the number which was in February has also been revised. The Central Commerce Department of the Government of US has revised its the number for February was also revised to 0.9, so overall the headline figure is the retail sales which is at 0.
7, here we see growth, so that is mainly driven by the rise in gas station sales, so there the fuel consumption has grown. From February to March, there is another trend coming here that the growth in volume terms is limited and the gas prices, the prices of gasoline in the US are quite high, that is why here. Overall sales of gas are on a higher side.
If we talk about motor vehicles and auto components of the auto segment, we see a decline of 0.7% here in the US in the month of March and the same is seen in electronics. And the sales of white goods which are appliances have fallen from 1.2%, so both these sectors are Automobile and Consumer Durable.
If we look at it on a broader basis, there has been a contraction here, but which is the prices of gasoline. Gas sales are on a higher side due to US retail sales data growth of 0.7% is reported here.
Apple faces worst iPhone slump
Next News is Regarding Yes, IDC is an agency which has done this. If the report has been published, then according to them apple.
com is that the volumes of the mobile phone industry are bigger than 7.8 per cent, so the result here is shocking, that is, the result is not actually the output numbers which are visible here, when the industry overall If it is growing then one of the market leaders which is at the second highest position after samsung.in counter parts especially the growth at 4 time.
is bigger than 7.8 par which is the market leader samsung.com has reported 34 Growth of So one more thing that we noticed here is that whatever work spaces there are in China, there are some restrictions on using imported funs, so this is the ban that Beijing has imposed,
so whatever work There are places where [music] has performed well in China compared to foreign devices and L has performed on a weaker note in this quarter.
March WPI inflation rises
We will talk about the Indian economy. The first news in the Indian economy is that it is regarding the wholesale price index. So WPI numbers came here, and we are seeing inflation increasing from 0.53 in the month of March, which is the inflation of Wholesale Price Index which is coming at 0.53 in March as compared to 0.
2 in February so here right now we have If we are talking about India, then the growth in wholesale prices was driven by food articles and primary utilities, for example electricity, crude natural gas, machinery and equipment, so the wholesale price index is due to all these. It has been seen increasing due to sectors.
If we talk about food articles only for safe, then inflation rate of 4.65 has been seen here in the month of March as compared to 4.09 in February so if we talk about other primary articles then the inflation rate has been at 4.51. This is as compared to 4.49 so mostly the jump that has been seen is inclined towards food articles, the maximum jump is seen there in the inflation numbers.
It is big but if we talk about CPI, last week’s CPI data also came, then CPI was at 10 months low and we saw a decline from the month of February, so CPI numbers come from 5.09 to 4.85, then CPI The numbers have come down and WPI has increased so this is how the economy has posted the numbers for March 2024.
India likely to receive above average monsoon
IMD which is the agency of Indian Metrological Department, so they have predicted that the monsoon in 2024 will be above average, so about 87 cm. Rainfall occurs in India if we look at the data of the last 50 years, so and a deviation of 4 per cent is always here, so around 96 to 104 per cent of this 87 which is the average rainfall of 87 cm, then generally monsoon remains in this range.
But this time in 2024, the monsoon can remain here at 106 A. From June to mid-September, which will be a period of 35 months, then IMD says that A. Rainfall will be on the better side. Monsoon will be good. And for an economy like India which is an agrarian economy where our economy is highly dependent on rainfall, this news will be positive from the perspective of our overall economy, so next we will talk about the stock market, about stock stock specific news.
But before that yesterday, the reaction of the market to the Iran-Israel war increased over the weekend, there was an attack on Iran-Israel and after that, when the Indian markets opened yesterday, there was a correction in the stock market. When it was seen, many stocks were seen going down significantly, especially the correction in small and mid-caps was heavy.
As compared to large caps, again the rally in large caps has also reduced and small caps which if small If we talk about end mid-caps, we can see gains of 5060 in the last one year whereas in large caps, there have been gains of almost 30. If we talk about it, then due to this, the gains in small and mid-caps are Correction also came yesterday so it was on a heaviest side that more correction was seen there and, on this note, Parimal Sir had also made a video so I hope you all must have seen that What are the Key Reasons of Yesterdays
Market Fall So now we will talk about the stock specific news that what is the specific news regarding some stocks,
Jio Financial and BlackRock ink pact
the first news is Jio Financials regarding this company, then Jio Financials and Black Rock, they had made an announcement in July 2023. That Jio Financial, which is Wealth Management Asset Management with Black Rock, will do 4a in this business, they will form a 5050 GV, they told this in July 2023 and tomorrow on April 15th [Music] 150 million dollars each, both are also participants here. Will contribute,
so first of all, in wealth management, this new JV will do 4a and there is another perspective that in broking business also, this JV will expand its business further, so we have come to know in the filing of one such company.Â
Senco Gold surges nearly 18 per cent
Next News Is Regarding Senco Gold So why Senco Gold released its business updates of 4 and after that yesterday this stock which has increased from 18 so this is a model portfolio stock of ours and if we talk about these numbers then FVA This company has reported a revenue growth of 28% in Q4
and if we talk about Q4, in Q4F24, CENCO has reported a revenue growth of 39%. A A This company says that the gold prices are increasing. But despite that, they have achieved volume growth of 13% in gold segment and in diamond segment they have achieved volume growth of 19% if we talk about triple SG and if we talk about same store sales growth then it is full 19%.
Sunco Gold has reported triple AG in FY 24 and along with that, in addition to this, growth on FY 19, Sunco also launched 23 new showrooms in FY 24, out of which four showrooms are in this In the quarter i.e. Q4 FY2, the company had launched All the stocks are quite meaningful. Mostly the stock market was on the negative side when the overall broad market was on the negative side.
This stock has given a return of 18% in one day.
Asian Paints launches Neo Bharat Latex Paint
So next we will talk about Asian Paints. So the paint industry is very much talked about. There is a lot of talk especially about new entrants and new competition, so Asian Paints launched a new paint brand, Bharat Latex Paint, so whatever paint companies are traditional, these people are more focused on urban cities.
And this has been a trend in all the major players so if we talk about the top four big forces in paints, Bed Berger, Exo Noble, Kansai Asian Paints, then all of them were following the same method that Urban We were focusing on cities T1, T2 because there was better growth there and now Asian Paints has started focusing on T3 and 24 and for that, this new brand Bharat Latex Pvt.
is an affordable category brand. It has been launched and the company says that this market in the rural areas is a market worth around Rs 4500 crores and these people are going to cater to it, so now before this specific branding, here in the rural economy, but given the growth prospect of the Overall Economy So they have launched a new brand to cater to the rural market and the company says that this brand will offer 1000 shades to its customers, so they have brought a much wider variety here.
And to promote this brand, Virat Kohli has been assigned as the brand ambassador here, so there can be a more aggressive outlook because a lot of new competition is coming in t1 t2, Grasim Industries has come from Zedal Paint, so many such All the end likes, let us talk about Astral,
let us talk about Pidilite, the companies which were working in the related space, they are also coming into the paint business now, so to explore new geographies, focus on t3 t4, here we have to go industry wide as well. You can go and see a new venture related to this; a new brand has been launched here by Asian Paints.
Ambuja Cements to acquire Tuticorin grinding unit
Next news is regarding Ambuja Cement, so Ambuja Cements has made an acquisition of My Home Industries from this group for 1.5 million tonnes of enum. The company has signed a deal to acquire a plant of capacity here yesterday, so there will be an investment of about Rs.
44144 crores here, which is the capacity overall. If we talk about Adani Cement, then after this deal, Goldman Sachs has If it is yesterday’s news only,
Economics Explained
then we will talk about the same that Goldman Sachs’s outlook for gold is going to get stronger, they believe that it is going to get stronger, and they have given a forecast for gold by the year, and they have said that Gold is currently trading anywhere between 2300 and $400 an ounce.
The historical run that has come has run up. Gold prices have increased by almost 20 per cent in the last two and a half months. And even after that, there can be a strong outlook, so we will present a little discussion about this before you, so before this, we will understand how gold and markets behave, so if we talk about gold and stock market historically.
So, when equities underperform, gold outperforms. We see such a negative relationship between these two asset classes. If we want to understand through some examples, then in 20078, 2000, when the subprime crisis happened, stocks A huge crash was seen in the market and the prices of gold were seen to be bullish there, hence gold is also treated as an inflation hedge and termed as a safe haven.
It is known that there is a safe and secure asset class, so recently also we can see that when the crash of Covid-19 happened, we saw that the market was around 75 800 and the prices of Nifty were around 75 800. At that time too, it was seen performing well. A very strong outlook was visible.
We can see in this chart that even in the fall of Covid-19, gold prices were performing well. After that, as soon as the market picked up, gold prices started falling. The prices also remained stable at some places and their returns were either marginal or in single digits or were in the negative range, but if we talk about the recent past, if we talk about the last one or two months, then gold was also quite high.
Well, we all know about the runup of the stock market, Nifty is also at all time high and gold is also at all time high, so if we talk about it, what is the reason for this, then there is an increase of about 20% in gold prices. This has been seen in the last two months and this is not from India’s perspective, this is from global perspective, so here we will not talk about rupee depreciation, so the first reason here is that it is regarding China, so in China we know.
That the real estate market in China is in a very bad state and the Chinese stock market is also not performing so well, so the investors there are shifting towards gold like we do in India. In China, gold gets an emotional question, similarly in China, which is its counterpart, gold is also a very attractive asset class in China.
Emotionally, the people there are very much invested in gold and due to this, the remaining asset classes are under pressure. If we are performing, then the demand for gold is increasing a lot and that is why the buying of gold in China and other emerging markets is looking quite strong. If we talk about the global market, then the demand is on a high.
It is on the higher side and because of that, we have seen the prices of gold increasing. The next reason, as quoted by Goldman Sachs in its report, is that the war going on in the Middle East. So, this Israel-Iran conflict has also come back into the limelight a bit, so as the geo- political tensions in the Middle East increase, there is a greater possibility that this situation may get worse.
So, the investors are moving towards safe haven asset class, hence the demand for gold seems to have increased a bit, hence due to this same safe haven demand, we saw an increase in the prices of gold. This is in the last two months and along with this, the expectations of interest rate cut are coming continuously.
Because gold is a physical asset, there is an opportunity cost of holding it and this means that if the interest rate goes down in future, then the actual When there will be rate cuts, then after that the unaffordable cost of holding gold will reduce in the future, due to this also the outlook of gold looks positive and this is what Gold Man Sachs also says that till now That all the events which have been seen historically are not playing out right now, a one off event, here we are seeing in the scenario of gold prices that the markets are also overall positive
and the economy is strong. It is visible and despite that, gold A is still outperforming, and its outlook may be good going forward, so I hope you have understood the correlation as to what the reason behind the recent run is up in gold prices. So, what are the reasons behind this, here we did a small discussion, so I hope you all would have liked this Economics Explained section and you would have been able to know why the prices of gold are increasing.
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